Bitcoin's Value Remains Steady Despite Positive U.S. Inflation Indicators
Summary:
Amid optimistic inflation indicators from recent U.S. economic data, Bitcoin's (BTC) value showed no significant shift on December 22. Despite Bitcoin breaking past the $44,000 mark earlier in the week, its reach stayed constrained prior to the U.S. holiday phase, according to data from Cointelegraph Markets Pro and TradingView. Meanwhile, marketplace responses have increased the likelihood of interest rate reductions in the month ahead. Despite an optimistic macroeconomic outlook and a weakening U.S. dollar, Bitcoin's performance did little to bolster investor confidence.
On December 22, Bitcoin's (BTC) value experienced no substantial shift despite optimistic inflation indicators as recent American economic data increased the chances of a change in interest rates. Data sourced from Cointelegraph Markets Pro and TradingView displayed uneventful pricing fluctuations of BTC around the close of the final Wall Street open of the week. Even with an earlier surge past the $44,000 mark this week, Bitcoin's reach stayed firmly constrained prior to the U.S. holiday phase.
The print for November of the Personal Consumption Expenditures (PCE) Index, also called the Federal Reserve's go-to inflation metric, exceeded forecasts. The ultimate figure was 2.6%, lower than the projected 2.8%, shedding more light on how tightening monetary control has influenced unchecked inflation. Market responses fell into line, lifting the likelihood of interest rate reductions in the month ahead to almost 15%, according to statistics from CME Group's FedWatch Tool.
Despite an optimistic macroeconomic outlook and a weakening U.S. dollar, Bitcoin's daily performance did little to bolster confidence among bullish investors. Meanwhile, prominent trader Skew pointed out increased bid liquidity on Binance, the world's largest exchange, supporting $41,000 and $42,000 as firm holding points.
Crypto Tony, another trader, identified the $44,300 mark as a decisive zone for BTC/USD to reach before considering putting weight behind a long position. Simultaneously, others stressed the need for Bitcoin to overtake its 2023 peaks, with a steady pattern maintaining much of December.
This news is not to be regarded as trading or investment advice. Every investment and trade maneuver carries a risk. Readers ought to do their independent research before making any financial decisions.
Published At
12/22/2023 6:20:52 PM
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